If you want full access to all our reports, data and investing ideas, join The Aerospace Forum , the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform.FedEx (NYSE: FDX ) reported Q2 2025 results on the 19 th of December and investors seem to have liked what they saw as the stock is trading up 8% pre-market at $297. I covered FedEx in June thisDhierin runs the investing group The Aerospace Forum , ...

FedEx is taking steps to streamline its operations by prioritizing its DRIVE program and separating FedEx Freight into a standalone, publicly traded company.These decisions were announced by FedEx President and CEO Raj Subramaniam Thursday (Dec. 19) during the company’s second-quarter earnings call, which saw the company’s total sales of $22 billion slip 1%.Amid these challenges, Subramaniam highlighted the ongoing success of FedEx’s DRIVE program, which he said is critical to the company’s operational impr ...

A FedEx cargo flight arrives at Qingdao Jiaodong International Airport in Qingdao, east China's ... [+] Shandong Province, Nov. 11, 2024. TO GO WITH "Interview: FedEx Asia Pacific president upbeat about China's thriving logistics sector" (Photo by Li Ziheng/Xinhua via Getty Images)Xinhua News Agency via Getty ImagesFedEx stock (NYSE: FDX) is expected to see higher levels after it announced the spin-off of its freight business. While this move was awaited, it bodes well for the stock, unlocking shareholder v ...

Shares of FedEx Corp (NYSE:FDX) opened the session at $294, but have pulled back from its highs slightly, last seen 4.6% higher at $288.64, fueled by a wave of significant developments during the bustling holiday shipping season. The shipping giant added $5 billion to its market cap after it announced the spinoff of its freight trucking business into a standalone company. This is a highly-anticipated move that analysts believe could create up to $20 billion in shareholder value. The news is helping FedEx st ...

Core Insights - FedEx announced plans to spin off its freight business as a separate public company, which has led to a significant increase in its stock price during extended trading, despite a lowered full-year outlook for fiscal 2025 [2][9][10] - The company has lowered its full-year fiscal 2025 outlook due to challenging conditions, particularly weaker demand from business customers, although December volumes have exceeded forecasts [3][9] Stock Performance - FedEx shares have increased by 9% since the beginning of the year, but this performance lags behind the S&P 500's 23% return during the same period [11] - The stock rose nearly 9% to $300 in extended trading following the announcement [11] Technical Analysis - FedEx shares have been trading within an orderly ascending channel since July of the previous year, with key overhead resistance levels identified around $305 and $370, and important support levels near $278 and $255 [5][9][15] - The stock has found buying interest around the 50- and 200-day moving averages, with trading volume reaching its highest level since late September [17] Future Projections - The spinoff is expected to generate up to $20 billion in shareholder value by streamlining operations and merging the Express and Ground units, which could enhance profitability [10] - A target price of $370 has been projected based on the measured move technique, indicating a potential upside of approximately 34% from Thursday's closing price [14]

Financial Data and Key Metrics Changes - Consolidated revenue declined by 1% in Q2, primarily due to a weak industrial economy [44][72] - Adjusted operating profit increased by approximately $170 million sequentially, driven mainly by the Federal Express segment [71] - Adjusted earnings per share (EPS) outlook revised to a range of $19 to $20, down from the previous range of $20 to $21 [79][80] Business Line Data and Key Metrics Changes - At FedEx Express, adjusted operating profit rose by 13% on essentially flat revenue, despite a challenging demand environment [26][72] - FedEx Freight experienced a decline in operating profit by $179 million, attributed to lower average daily shipments and weight per shipment [75] - International export package volumes increased by 9%, indicating strong growth in international economy services [50] Market Data and Key Metrics Changes - U.S. manufacturing PMI indicated a contraction for 24 out of the past 25 months, reflecting a prolonged downturn in the industrial sector [45] - Ground volumes were down 1%, primarily due to weakness in the B2B environment [48] - International priority freight average daily pounds increased by 10%, signaling early progress from the tricolor strategy [50] Company Strategy and Development Direction - The company plans to pursue a full separation of FedEx Freight, aiming to create two industry-leading public companies [8][24] - Focus on enhancing operational efficiency through initiatives like DRIVE, which is expected to deliver $4 billion in savings by the end of FY '25 [19][28] - Continued emphasis on revenue quality and capital allocation priorities, including share repurchases and dividends [87][88] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing uncertainty in the demand environment but expressed confidence in the transformation initiatives [31][32] - The company expects to see slight revenue growth in the second half of FY '25, supported by improved demand and pricing strategies [54][80] - Management remains focused on controlling costs and optimizing operations to navigate the current economic challenges [72][86] Other Important Information - The company achieved DRIVE savings of $540 million in Q2, contributing to year-over-year adjusted earnings growth [28][72] - A new state-of-the-art sorting facility at the Memphis World Hub was opened, marking a significant milestone in modernization efforts [40][41] - The company plans to hire 300 additional LTL specialists to enhance customer support and drive profitable growth [56][108] Q&A Session Summary Question: Guidance for the back half of the year - Management indicated that the updated adjusted EPS range reflects revised revenue expectations due to lower anticipated volumes [95][96] Question: Peak season performance and volume trends - December volumes were running ahead of forecast, with expectations for improved domestic volumes in the back half of the year [100][102] Question: Separation of FedEx and FedEx Freight - Management emphasized the potential for increased shareholder value through the separation and outlined plans for a smooth transition [107][108] Question: Network 2.0% rollout progress - The rollout has optimized 200 stations so far, with expectations to complete integration in Canada early in 2025 [113][114] Question: Capital allocation post-separation - Management confirmed that there will be no changes in capital allocation strategy, focusing on optimizing existing businesses and returning cash to shareholders [117][118] Question: Commercial agreements and customer contracts - Existing contracts will be honored, and the company is confident in its commercial strategy moving forward [124][128] Question: EPS guidance change and underlying trends - The change in guidance was influenced by pressures in the freight business, while core trends in Express are showing improvement [130][133]

For the quarter ended November 2024, FedEx (FDX) reported revenue of $21.97 billion, down 0.9% over the same period last year. EPS came in at $4.05, compared to $3.99 in the year-ago quarter.The reported revenue represents a surprise of -0.34% over the Zacks Consensus Estimate of $22.04 billion. With the consensus EPS estimate being $3.90, the EPS surprise was +3.85%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expect ...

Thursday, December 19, 2024The stock market gave a rebound the old college try today, but aside from a modest +15 points on the blue-chip Dow, indexes closed in the red again today. Results were nowhere near as bad as they were yesterday, but the S&P 500 slipped -5 points (-0.09%), the Nasdaq -19 points (-0.10%) and the small-cap Russell 2000 -10 points (-0.45%).For the Dow, it breaks a 10-session losing streak off all-time highs at the start of this month, including its worst single-trading day since the d ...

In a Thursday interview with CNBC's Jim Cramer, FedEx CEO Raj Subramaniam said his company can do well even if there is a supply chain shakeup."As the supply chain patterns change, we are here, there and everywhere," he said. "That's the advantage people sometimes miss, the fact that we have a scaled network in place, provides us an advantage in these dynamic times."President-elect Donald Trump has threatened to drastically hike import tariffs for several countries, especially China, and these moves would l ...

FedEx (FDX) came out with quarterly earnings of $4.05 per share, beating the Zacks Consensus Estimate of $3.90 per share. This compares to earnings of $3.99 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.85%. A quarter ago, it was expected that this package delivery company would post earnings of $4.82 per share when it actually produced earnings of $3.60, delivering a surprise of -25.31%.Over the last four quarters, the co ...